07 Sep - 5 min read

Group results for the 53 weeks to 4 July 2021

Group results for the 53 weeks to 4 July 2021

SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")

Group results for the 53 weeks to 4 July 2021


Pieter Engelbrecht, Chief Executive Officer

2021 was a challenging year but as a result of the Group's commitment and 
execution, we increased sale of merchandise by 8.1%. In rand terms, this 
growth equates to an additional R12.6 billion in sales on last year's 
restated base to total a record R168.0 billion in sales for the year. In a 
53-week year, our Supermarkets RSA segment reported strong sales growth of 
9.3% from a high base despite our LiquorShop business being closed for 144 
days. This result was a combined effort from our Shoprite and Usave 
businesses which increased sales by 8.8% and our Checkers and Checkers Hyper 
businesses, which increased sales by 10.9%. This growth is a testament to 
our loyal customers and the relentless commitment of our team who ensured we 
delivered unsurpassed value, either in-store or digitally, throughout the 
year. 

It was a significant year for our Supermarkets Non-RSA segment given that 
we sold our Nigerian supermarket business, closed our operations in Kenya 
(three stores) and classified our operations in Uganda (five stores) and 
Madagascar (10 stores) as discontinued. The region remains challenging, but 
our capital allocation review coupled with various in-country initiatives 
have resulted in improved profitability. 

The Group's Furniture segment increased sales by 24.6%. Our Other operating 
segments' sales growth of 10.0% is commendable, especially considering that 
both Checkers Food Services and Computicket continue to be significantly 
impacted by COVID-19 and lockdown regulations. The OK Franchise business 
goes from strength to strength, as evidenced by 8.2% sales growth this year.

The Group has recently unveiled ShopriteX, our digital tech hub which blends 
the best of data science, technology and digital talent to save customers 
time and money through innovation. After a year of incubation, ShopriteX 
already boasts two industry leading innovations, namely the Xtra Savings 
Rewards Programme, South Africa's fastest growing rewards programme and 
Checkers Sixty60, Checkers' pioneering 60-minute grocery delivery service. 
Consumer response on both counts has been unrivalled, with the Xtra Savings 
Rewards Programme signing up over 20 million members and Checkers Sixty60 
becoming the number one grocery app in the country with over 1.5 million app 
downloads.

Despite being South Africa's largest private sector employer, we still 
aspire to create employment as it is critical to improve the lives of our 
fellow citizens. On that front, we added 3 897 new jobs this year. My 
sincere thanks go to our Group's customers, suppliers, employees and 
stakeholders for their continued support and commitment throughout 2021.

                                                                  Restated*
                                              Change   53 weeks   52 weeks
Key information - continuing operations            %       2021       2020

Sale of merchandise (Rm)                         8.1    168 030    155 409 
Trading profit (Rm)                             24.9     10 332      8 272 
Operating profit (Rm)                           19.0      9 664      8 124 
Profit before income tax (Rm)                   23.1      6 957      5 651 
Income tax expense (Rm)                         26.3      2 241      1 774 
Profit for the year (Rm)                        21.6      4 716      3 877 
Attributable to owners of the parent (Rm)                 4 698      3 857 
Attributable to non-controlling interest (Rm)                18         20 
Basic headline earnings per share (cents)       20.3      956.3      794.7
Basic earnings per share (cents)                22.1      851.6      697.5
Dividend per share (cents)                      42.0      544.0      383.0

Profit for the year including discontinued 
operations (Rm)                                 43.9      4 859      3 376 
Attributable to owners of the parent (Rm)                 4 841      3 356 
Attributable to non-controlling interest (Rm)                18         20 
Basic headline earnings per share including 
discontinued operations (cents)                 29.1      977.1      756.9
Basic earnings per share including 
discontinued operations (cents)                 44.6      877.5      606.9

* Restated for newly classified discontinued operations in accordance 
  with IFRS 5.

Declaration of ordinary dividend

The Board has declared a final dividend of 353 cents (2020: 227 cents) 
per ordinary share, payable to shareholders on Monday, 4 October 2021. The
dividend has been declared out of income reserves. This brings the total
dividend for the year to 544 cents (2020: 383 cents) per ordinary share. 
The last day to trade cum dividend will be Tuesday, 28 September 2021.
As from Wednesday, 29 September 2021, all trading of Shoprite Holdings Ltd 
shares will take place ex dividend. The record date is Friday,
1 October 2021. Share certificates may not be dematerialised or
rematerialised between Wednesday, 29 September 2021, and Friday,
1 October 2021, both days inclusive.

In terms of the Dividends Tax, the following additional information is 
disclosed:

1. The local dividend tax rate is 20%.

2. The net local dividend amount is 282.4 cents per share for 
   shareholders liable to pay Dividends Tax and 353 cents per share for
   shareholders exempt from paying Dividends Tax.

3. The issued ordinary share capital of Shoprite Holdings Ltd as at the
   date of this declaration is 591 338 502 ordinary shares.

4. Shoprite Holdings Ltd's tax reference number is 9775/112/71/8.

About this announcement

This short-form announcement is the responsibility of the Directors of 
Shoprite Holdings Ltd. It is only a summary of the information in the 
condensed consolidated financial statements and does not contain full or 
complete details. The condensed consolidated financial statements for the 
year ended 4 July 2021 have been reviewed by Shoprite Holdings Ltd's 
external auditors who have reached an unmodified review conclusion. Any 
investment decisions by investors and/or shareholders should be based on 
consideration of the condensed consolidated financial statements published 
on the Stock Exchange News Service (SENS) and www.shopriteholdings.co.za as 
a whole.

The condensed consolidated financial statements have been released on the 
JSE (https://senspdf.jse.co.za/documents/2021/jse/isse/SHP/ye2021.pdf) 
and are also available for viewing at 
https://www.shopriteholdings.co.za/content/dam/SENS/YE2021-Sep2021.pdf. 
Copies of the condensed consolidated financial statements may be requested 
from the Company Secretary (cosec@shoprite.co.za, tel +27 (0)21 980 4284) 
at PO Box 215, Brackenfell, 7561, South Africa.

By order of the Board

WE Lucas-Bull                   PC Engelbrecht
Chairman                        Chief Executive Officer

Cape Town
7 September 2021

Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank 
Limited


Date: 07-09-2021 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Shoprite Holdings Limited (JSE:SHP) when you join Listcorp.